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Singapore-listed warehouse operator GLP’s revenue increased by 27% to SGD262 million in the three months ended 30 June 2017 (Q1 FY2018) compared to SGD207 million in the same period a year ago, revealed an SGX filing on Tuesday (8 August).
However, net profit declined by 29% to SGD144 million from SGD203 million previously in light of the lower revaluations in the period under review. Excluding revaluations, earnings soared 131% to SGD89 million from SGD39 million thanks to foreign exchange movements.
“GLP’s new and renewal leases increased 35% year-on-year to 3.3 million sqm (36 million sq ft.), with approximately 72% of customers renewing their leases with GLP. Rent growth remained healthy, with the group recording 5.2% growth in same-property net operating income and 7.7% rent growth on renewal leases,” it said.
In Q1 FY2018, the group started USD226 million and completed USD252 million of development projects. These represent 11% and 15% of its targets for the fiscal year of USD2.2 billion and USD1.7 billion respectively which it expects to achieve.
Meanwhile, Nesta Investment Holdings Ltd has proposed to privatise GLP via a scheme of arrangement and offered to pay SGD3.38 per share by 22 August 2017. This gives the industrial landlord a market valuation of about SGD16 billion (USD11.6 billion).
Nesta is jointly owned by HOPU, Hillhouse Capital, Vanke, Bank of China Group Investment and GLP’s current Chief Executive Ming Z. Mei.
A special committee advising GLP on the deal, with guidance from external financial and legal advisers, considered Nesta’s offer as “superior” from all the firm proposals received on 30 June, including that from a consortium led by Warburg Pincus.
Singapore’s sovereign wealth fund GIC, GLP’s single biggest shareholder with a 36.8% stake, has given an irrevocable undertaking to vote in favour of the offer subject to certain conditions.
Upon completion of the deal, GLP will be delisted from Singapore’s stock exchange, while GIC will divest its entire stake in the warehouse operator, which owns and manages a portfolio of 56 million sqm of industrial space across the world. It is also one of the globe’s biggest property fund managers with USD39 billion worth of assets under management.
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